Ecobank, BNDES Brazil partner on $20m facility

Ecobank Nigeria has signed a $20 million line of credit with Brazilian Development Bank BNDES.

The facility will address special funding needs of customers and non-customers of Ecobank that import goods from Brazil.

BNDES, also known as National Bank for Economic and Social Development, is one of the largest development banks in the world, with financial net worth of $27.40 billion and total assets of $353.37 billion in 2013.

Executive Director, Corporate Banking, Ecobank Nigeria, Ms Foluke Aboderin, said the partnership was driven by demands from customers and importers requiring competitive financing to purchase products from the international markets, particularly Brazil.

According to Aboderin, the partnership underscores Ecobank’s pedigree in trade financing in Nigeria. “This partnership offers a seamless solution to companies that import goods from Brazil,” she said.

“We encourage all goods importers to avail themselves of the opportunity that this funding arrangement provides by approaching Ecobank. We expect it to generate a sizeable boost in trade flows between both countries.”

Under the deal, the executive director explained, importers and exporters negotiated export terms and conditions, and once commercial negotiation is finalised, the exporter or agent bank in Brazil submits the transaction to BNDES for approval.

The areas of interest for the import facility include agricultural products, engineering and construction equipment, oil and gas, industrial goods, electronics, and confectionary, among others.